Bank Indonesia Says 5.4% Growth This Year Is Too Optimistic
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Central bank deputy governor says 5.2% growth more realistic
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Investment-grade score should serve as inspiration for reforms
Indonesia’s central bank said economic growth of 5.4 percent this year is too optimistic and the nation should aspire for higher credit ratings to catch up with Southeast Asian peers.
“In our view, the 2017 growth rate should be higher than 2016,” Bank Indonesia Senior Deputy Governor Mirza Adityaswara said in an interview in Jakarta on Friday. “Maybe 5.4 percent is still a bit too aggressive, but we think 5.1 percent to 5.2 percent is still a possible number to achieve in 2017.”
While Southeast Asia’s biggest economy is gradually recovering, it faces risks from a slowdown in China and weaker prices of coal and palm oil, the nation’s main commodity exports. President Joko Widodo, known as Jokowi, has pledged to boost growth to 7 percent during his term in office, but economists surveyed by Bloomberg predict expansion of under 5.5 percent until 2019…
Bank Indonesia Says 5.4% Growth This Year Is Too Optimistic
